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WHITECAP RESOURCES INC. ANNOUNCES RECEIPT OF PROPOSAL LETTER FROM THE CANADA REVENUE AGENCY TO REASSESS AND INTENTION TO DEFEND
WHITECAP RESOURCES INC. ANNOUNCES RECEIPT OF PROPOSAL LETTER FROM THE CANADA REVENUE AGENCY TO RE...
About this update from Whitecap Resources Inc.
[{"type":"text","content":"\n \n \n \n WHITECAP RESOURCES INC. ANNOUNCES RECEIPT OF PROPOSAL LETTER FROM THE CANADA REVENUE AGENCY TO REASSESS AND INTENTION TO DEFEND\n \n \n /* Style Definitions */\nspan.prnews_span\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\na.prnews_a\n{\ncolor:blue;\n}\nli.prnews_li\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\np.prnews_p\n{\nfont-size:0.62em;\nfont-family:\"Arial\";\ncolor:black;\nmargin:0in;\n}\n \n \n \n \n \n \n Canada NewsWire\n \n \n \n \n \n \n CALGARY, AB\n \n \n ,\n \n \n May 23, 2023\n \n \n /CNW/ - Whitecap Resources Inc. (\"\n \n Whitecap\n \n \") (TSX: WCP) announces that it has received a letter (the \"\n \n Proposal Letter\n \n \") from the Canada Revenue Agency (the \"\n \n CRA\n \n \") advising that, subject to submissions by Whitecap, the CRA is proposing to reassess a former subsidiary of Whitecap to deny non-capital loss deductions relevant to the calculation of income taxes for the years 2018 and 2019.\n \n \n In 2014, Whitecap acquired a private entity that held an interest in certain oil and natural gas assets and which had accrued non-capital losses in its business. The proposed reassessment seeks to disallow the deduction of approximately\n \n $494 million\n \n of these non-capital losses under the\n \n Income Tax Act\n \n (\n \n Canada\n \n ) for the years 2018 and 2019. If the non-capital losses that have been claimed for the years 2018 and 2019 were ultimately disallowed, it is expected to result in an estimated liability for the previous taxation years of approximately\n \n $133 million\n \n , excluding interest.\n \n \n Whitecap will vigorously defend its tax filing position. Whitecap has received advice from its tax advisors that it should be entitled to deduct the non-capital losses and is of the opinion that its tax filings to-date are correct. It is not expected that the Proposal Letter will impact years other than 2018 and 2019.\n \n \n Whitecap is preparing a response to the Proposal Letter and, failing a resolution of the matter, the CRA may proceed to issue a notice of reassessment. If the CRA reassesses Whitecap as described in the Proposal Letter, Whitecap will have 90 days from the issuance of the notice of reassessment to prepare and file a notice of objection which would be reviewed by the CRA's Appeals Division. At that time, Whitecap wou...